What Assures Consumers in an Economic Downturn? - AccountAbility

More documents

Recommendations

Info

Forewords Forewords Barry Clavin Contrary to what was predicted from certain quarters, this research highlights that consumer attitudes to corporate responsibility have remained fairly stable during the early days of this downturn. Issues that mattered to consumers back in 2006 remain important today. In the main, consumers look to the businesses that they transact with to treat people well, be it employees or supply chain workers, and to be honest and transparent in their dealings. What’s more, consumers are claiming that, with one or two exceptions, their predisposition to purchase ‘ethically’ is not set to change significantly over the next six months. However, what does seem to have changed is the trust shown to corporate businesses. Three years ago there was a willingness from consumers to take commercial information more readily at face value so that trusted channels of information included in-store promotions and on pack information. Today just four per cent of consumers claim to trust the PLC model despite more than one in two consumers identifying businesses as key to ensuring responsible behaviour. It is not insignificant to note that independent information sources are now the primary source of consumer assurance, in particular consumer watchdogs, and to a lesser extent trusted third party accreditation bodies. So, after consumer watchdogs, and alongside industry regulators, it is rewarding to see co-operatives identified as trusted organisations. Our recent experience chimes with this research. Over the last twelve months or so, The Co-operative has consulted with over a quarter of a million of its member customers to inform its approach to sustainable development. This has included its most successful consultation on The Co-operative Bank’s customer-led Ethical Policy and has culminated in The Co-operative’s largest ever values-led advertising campaign. What’s more, current account openings at the Bank are up sixty five per cent and annual sales of our Fairtrade products have increased by some forty four per cent. What consumers seem to be saying to business is that if corporate responsibility mattered in good times then it should matter in tougher times. Businesses should, therefore, not think that they can hope to rebuild consumer trust by turning on and off the ‘corporate social responsibility’ tap. Indeed, when the economy turns around, consumers may well be holding such businesses to account and asking: ‘So what did you do in the downturn?’ Barry Clavin Ethical Policies and Sustainability Reporting Manager The Co-operative Group 4
Ed Mayo We live in what commentators have called a ‘symbolic economy’, in which every product and service takes on new meanings, whether of freedom, identity, wellbeing or security. When consumer magazines started life, decades ago, they listed products for their functional value rather than their symbolism. I remember Which? magazine selecting a pair of jeans from the dowdy camping shop, Milletts, as their “best buy” – perfect if you pick your jeans by price but not quite right if it is the values of look and fashion that count for shoppers. In this world of brand, marketing, emotion and corporate reputation, the work of AccountAbility stands out for its intelligent analysis of what really works for consumers when it comes to assuring them of the positive value of what they buy in relation to the symbolic imperatives of environment, human rights and social justice. I know from work I have done with AccountAbility in the past that consumers value fairness. They want companies to be fair to them and fair to others. But it is important to know what it takes for them to translate this generalised intention into purchasing habits. The role of consumer watchdogs takes on a new meaning in recessionary times. As the founder of Britain's newest consumer watchdog, Consumer Focus, I am heartened but not surprised that this report confirms that consumer campaigns have a growing influence. Consumer groups like ours are rising up the trust rankings while the organisations charged with holding businesses to account, from government to regulators to businesses themselves, are increasingly less trusted to do so. This may not be ideal, but the good news is that as more and more consumers take action, demanding a fair deal, raising their voice if they don't get it and sharing information on their experience with others, the more companies become accountable because they are regulated by their customers rather than the Government rule book. The more that consumers integrate symbolic values of fairness alongside an enduring concern for quality and price, the more responsible as well as accountable companies will be. Trust matters, but times of uncertainty are not easy periods in which to build trust. With consumer behaviour in flux and the economy in such uncertain territory, this new analysis from AccountAbility will prove invaluable to consumers, businesses and policy makers alike. Ed Mayo Chief Executive Consumer Focus What Assures Consumers in an Economic Downturn? 5
Page 1 and 2: What Assures Consumers in an Econom
Page 3: Contents Forewords ................
Page 7 and 8: Will the recession herald the dawn
Page 9 and 10: Box 1. Timeline of the credit crisi
Page 11 and 12: Figure 1. Product labeling Which la
Page 13 and 14: The changing nature of consumer opi
Page 15 and 16: Figure 4. Consumer action to penali
Page 17 and 18: Figure 5. Most and least trusted UK
Page 19 and 20: The implications for communication
Page 21 and 22: A new phase of consumer assurance?
Page 23 and 24: • The Amsterdam Declaration from
Page 25 and 26: • In the meantime, business and c
Page 27 and 28: 20 Boston Consulting Group, Capturi
Page 29 and 30: About the organisations AccountAbil
Page 31 and 32: What Assures Consumers in an Econom

What Assures Consumers in an Economic Downturn? - AccountAbility

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?